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How much service tax payable?

Total Replies. 4

My revenue from services last year was 8 lakhs.

This financial year I got my a service tax registration done after revenue exceed

2) What is the frequency in which I need to make payments ?Mine is a proprietership.

Thanks in advance for your response.

by Yogesh Bhandari on 28 December 2011

You need to pay service tax on 13-10= 3 lakhs @ 10.3% and you need to make payments at quarterly intervals

Thanks for the reply Yogesh.

I have few follow on questions:

1) I understand that from next year I will have to pay service tax from the beginning only irrespective of weather my revenue raches 10 lakhs or not. Am I correct? If suppose my revenue doesnt reach 10 lakhs then is the deposited tax refundable?

2) If my this years revenue is between 9 and 10 lakhs (suppose 9.5 lakhs) then do I need to charge service tax from beginning or only when revenue exceeds 10 lakhs

Thanks for your response

by Yogesh Bhandari on 28 December 2011

You will have to pay service tax from the beginning only irrespective of whether your

receipts exceeds 10 lakhs or not. And, in no case the service tax is refundable if your receipt does not exceed 10 lakhs because once your receipts exceed 10 lakh then you will nowhere in position to get exemption and service tax is applicable from the beginning in the next financial year.

If your this years revenue is between 9 and 10 lakhs (suppose 9.5 lakhs) then you need not to charge service tax from beginning but you should charged service tax only when revenue exceeds 10 lakhs or on volunarily basis from the beginning..

by U S Sharma on 29 December 2011

@ Ravi

service tax is terminal tax, i.e you have to charge the same in your bills/ collect the same from service receipent and pay to deparment, no refund in any case except export of services. however your client can take credit of same.

if your service fall below 10 lacs in next year, you would be not be eligible for exemtion of 10 lacs in next financial yeardue to exceeding the limit in curent year.

however if your services belong below 10 L in next FY, you would get benefit of 10L in susequent year.

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Source: www.caclubindia.com

Category: Taxes

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